If I were to need to start writing a book this week, this is probably where I'd organize the research and composition.
You can use it as a journal, personal wiki, knowledge base, task management, or just a Markdown text editor. There are hundreds of plugins that make it easy to tailor the app to your needs.
It's also focused on privacy and future-proofing your notes. All your data is stored locally in a folder of plain text files.
Do you mean using a third-party sync application (Syncthing for example)? All I could find is a feature request: https://forum.obsidian.md/t/self-hosted-sync-server/20975/13